Inequality Makes Low-Carbon Transition and Climate Resilience Incompatible

Abstract

This article discusses three major 2025 reports—the Global Multidimensional Poverty Index, the Climate Inequality Report, and the COP 30 decision on the Global Goal on Adaptation—and highlights a core policy conundrum: effective climate action depends on the eradication of poverty, achievement of developmental aspirations, and reducing inequality. This aligns with the United Nations Framework Convention on Climate Change principle of Common but Differentiated Responsibilities and Respective Capabilities, which recognizes poverty eradication as a primary goal of developing countries.

Poverty and climate vulnerability reinforce each other, as the bulk of multidimensionally poor people are located in regions with high climate risks and lack adaptive capacity. Unless climate action is specifically targeted towards disadvantaged sections, it can worsen poverty, inequality, and vulnerability. A low-carbon transition can lead to further concentration of wealth, higher poverty rates, and greater climate vulnerability if inequality is left unaddressed.